India copper futures ease on global cues

(Updates prices)

MUMBAI Aug 6 (Reuters) - India copper futures eased on Thursday in tune with overseas markets, where economic concerns weighed on the red metal along with profit-booking, analysts said. The most-traded copper August contract MCCQ9 was down 1.36 percent 291.00 rupees per kg at 5.36 p.m. The contract had gained 11 percent in the previous 6 sessions.

The U.S. Institute for Supply Management's services index contracted in July at a faster pace than in June, below analysts' expectations. [ID:nN05242984]

"The weak sentiment is due to yesterday's data and profit-booking," said Somnath Dey, in-charge metals and energy research with Religare Commodities. "Copper may trade in the range of 287-292 rupees for the day."

"Copper's rally is exceeding fundamentals and see a fall to 282/285 (rupees) later in the session," said Tejas Seth, a senior research analyst with SMC Global.

Meanwhile, copper stocks in the warehouses monitored by the London Metal Exchange was down 725 tonnes to 284,375 tonnes on Thursday.

Copper prices have gained more than 60 percent so far in 2009 on Chinese demand and hopes of receding economic recession.

Friday's U.S. payrolls report will be a key factor in determining whether this year's rally will sustain.

A Reuters poll of economists forecast 320,000 job cuts in July, down from 467,000 in June.

In other base metals, zinc for August delivery MZIQ9 was 0.94 percent lower at 89.45 rupees per kg, while August lead MLDQ9 was 1.41 percent lower at 90.90 rupees at 5:36 p.m.

(Reporting by Siddesh Mayenkar; Editing by Prem Udayabhanu)